Myths Regarding Fast Cash Lenders

Non-traditional lenders, also referred to as direct lenders, are in the practice of approving loans quickly and with minimal requirements. Loans can be approved and money deposited into bank accounts as soon as a few hours in some cases and typically no later than forty-eight hours. The service is convenient in an emergency and that convenience comes at an extremely high interest rate. Most people have a few misconceptions about direct lenders that can result in a rude awakening.

Myth One: Everyone Is Approved

The approval rates for direct lenders are much higher than traditional banks, but they are not at one-hundred percent. People are denied fast cash loans. There is no guarantee that those who apply will receive the cash they request. While approval is decided upon for payday loans with no credit check, a credit check is completed for installment loans.

While each lender, like MoneyBoat UK, for example, has slightly different minimum requirements all lenders also decide not to do business under certain circumstances. Some choose not to offer loans to students, those unemployed, active duty military personnel, or people residing in specific areas. It is best to check the websites of lenders to discover exact minimum requirements.

Myth Two: Lenders Are Eager for Applicants

Direct lenders have plenty of applicants on a regular basis. They do not have to recruit people to take out UK loans. Yes, they want your business if applying for a fast loan, but most practice responsible lending. What that means is the homepage issues a clear warning stating late or missed payments will cause serious financial problems. Resources and advice on alternatives to fast cash loans are also present on sites.

Myth Three: The Applicant Controls Repayment

Once the money is spent and repayment is due, either all at once or in installments for six months, many people are under the impression that they control repayment transactions. Some even think that the lender cannot collect the money if they cannot locate the applicant. This is completely inaccurate. Payments are initiated by the lender because the applicant has to agree to have payments debited to their credit card or debit card.

The lender will send reminder emails to applicants confirming the amount of the payment and the date it will be taken out. If the money is unavailable, a significant late fee is added to the total. Failure to respond to lender requests for payment can result in a court case, the expenses for which the applicant is responsible.

Applying for a high interest, short-term loan is a serious matter that should be considered carefully. Get all the facts and weigh all other options before applying. Go to moneyboat co uk to learn more.